To augment this a bit: I also came across one of these dongles (vendor
0x0bda product 0x8176) that gave me this "timeout waiting for checksum
report" message. Retrying didn't help, but plugging the dongle out and
then back in did. After powercycling the machine, I had to replug it
again. Once replugged, the dongle seems to work fine (I rebuilt kernel
and some ports via NFS over it thus far).

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This suggests that the driver (or more generic part of the USB stack)
does not initialize something correctly, while full plug-and-play thing
does it. Any ideas?

We have to reset the bit of the R92C_MCUFWDL associated with checksum report
before writing firmware. Could you try this patch? Thanks.

Shit. I'd like to help, but no longer have access to the dongle. If I find
anything similar (or find a way to get access to original dongle remotely),
I'll let you know. :(

No worries. I committed it as r263154. Hope this problem get fixed. :-)